Jindal Steel’s arm commences iron ore dispatches from El-Mutun mines

Jindal Steel Bolivia (JSB), a subsidiary of Jindal Steel and Power (JSPL), has commenced dispatch of iron ore from its EI-Mutun mines in Puerto Aguirre, a river port in Bolivia. Iron ore will be transported to different destinations through the Parana Paraguay Hidrovia riverway. This is for the first time that iron ore from the company will be exported. The company will be exporting iron ore, mainly to China, Middle East, European and South American countries.

The logistics of the dispatch of iron ore has a major challenge for this project and the start of iron ore transportation is a landmark step towards overcoming this challenge.

Jindal Steel Bolivia had secured the development rights of 20 billion tons of iron ore of EI Mutun mines, one of the world`s single iron-ore deposits, in 2007. The 40 year contract that gave the company the right to mine the reserves of iron ore also includes setting up an integrated 1.7 MTPA Steel Plant, a 6 MTPA Sponge Iron and 10 MTPA Iron Ore Pellet plant in Bolivia with an investment of $2.1 billion.

This will be largest investment by an Indian company in South America and also the largest investment by a foreign company on single project in Bolivia. The company is starting construction work on the DRI, Pelletisation and Steel project. These are expected to become operational in the next 3-4 years.

JSB has already placed an order for an ultra mega module DRI Plant of 2.52 MTPA capacity from Midrex, US. It has acquired land for the Project and the natural gas supply and other infrastructure facilities have been committed by Government of Bolivia as per its contract with JSB.